Bali: A Roomy Destination

10,000 New Hotel Rooms in Bali for 2011 to Add to Existing Oversupply of Accommodation

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(7/29/2011)

Beritabali.com says the Bali Hotel Association (BHA) is predicting an increase of 10,000 new hotel rooms will come on line in Bali in 2011.

The permits for these new hotels were issued before the provincial government of Bali introduced a moratorium on new hotel projects in the island’s southernmost regions.

The executive director of the BHA, Djinaldi Gosana, told the press on Friday, July 29, 2011, that the supply of so many new rooms brings with it the threat of unhealthy rate competition between hotel operators in Bali. Only if these new hotels pave the way for access to new markets for Bali will the rate situation remain commercially conducive.

Djinaldi called for the creation of new markets – such as India, the Middle East and South America including Brazil.

The Chief Executive of the BHA warned that the additional rooms in Bali creates complex challenges to ensure that Bali hotel rooms are not sold at rates that are too low and, in the end, economically non-viable in the long term.

In the past, a study conducted by the Ministry of Culture and Tourism indicated that Bali is currently experiencing an oversupply of 9,800 rooms.